HTC Swings to Profit on New Flagship Phone, Cost Cutting

Revenue Could Struggle With Launch of Next-Generation Phones in Second Half by Rivals Apple, Samsung

TAIPEI—The launch of new flagship and midrange phones, cost cutting and disposal of assets helped HTC Corp. swing back to a profit in the second quarter, but the Taiwanese smartphone maker is still not out of the woods yet.

HTC on Thursday reported a net profit of 2.26 billion New Taiwan dollars (US$75.6 million) in the second quarter, up 80% from the same quarter in 2013 and better than a net loss NT$1.88 billion in the previous quarter. A survey of 16 analysts by Thomson Reuters forecast the second-quarter net profit would...